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Program budgeting and marginal analysis: a case study in chronic airflow limitation
A Crockett1, J Cranston, J Moss
1Respiratory Unit, Flinders Medical Centre, Adelaide, South Australia.
Abstract:
Program budgeting and marginal analysis is a method of priority-setting in health care. This article describes how this method was applied to the management of a disease-specific group, chronic airflow limitation. A sub-program flow chart clarified the major cost drivers. After assessment of the technical efficiency of the sub-programs and careful and detailed analysis, incremental and decremental wish lists of activities were established. Program budgeting and marginal analysis provides a framework for rational resource allocation. The nurturing of a vigorous program management group, with members representing all participants in the process (including patients/consumers), is the key to a successful outcome.
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